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Score World Cup Investing Goals With This ETF

  • Related Symbols
  • PEJ
Alright football fans (not the American kind of football), the World Cup starts tomorrow, and with North America serving as the host region, the doors are ajar for related investing opportunities.Market participants looking to score some goals — soccer pun intended — would do well to consider ETFs over individual stocks, because a variety of stocks have the potential to benefit from the world’s marquee soccer tournament. The Invesco Dynamic Leisure & Entertainment ETF (PEJ A-) is the ETF to consider. PEJ, which follows the Dynamic Leisure & Entertainment Intellidex℠ Index, turns 21 years old later this month. The $243.88 million ETF is a broad entertainment and leisure play. That depth is pertinent when investing around the World Cup. For example, PEJ’s exposure to hotel stocks, such as Hilton Worldwide (HLT) and Marriott International (MAR) could benefit investors. “We believe the Luxury segment will have the highest benefit,” noted Deutsche Bank. “The Economy chain scale will benefit the least on a relative basis, in our view, though it will still see a lift. Hyatt, Hilton, and Marriott should all outperform in lodging, given elevated chain scale exposure.”More World Cup Winners in PEJPEJ’s World Cup exposure doesn’t end with hotel equities. Obviously, fans flocking to North America from around the world to support their countries need to book reservations and PEJ covers that base with stakes in Expedia (EXPE) and TripAdviso (TRIP), among others. There’s also a media angle, with Deutsche Bank highlighting PEJ holding Fox Corp. (FOXA) as one of the World Cup media winners. “We view the World Cup as a tailwind for Fox that could lead to upside to consensus estimates for both the June and September quarters,” noted the bank. The tournament, which is taking place in a variety of North American cities, could be a boon for food service and restaurant equities as well. “Restaurant industry data provider Technomic estimates the World Cup will drive $1.9 billion of incremental sales to the overall US Foodservice industry,” observed Deutsche Bank. “Based on the New York City Hospitality Alliance, in 2022, ~75% of New York City restaurants and bars saw an increase in revenue during US TV broadcasts of the FIFA men’s World Cup (most aired starting in the late morning/early afternoon), with ~55% saying the spike was particularly steep during the US team’s game)." The bank marked food distributor Sysco (SYY), PEJ’s seventh-largest holding, as a potential World Cup winner. For more news, information, and analysis, visit the Innovative ETFs Content Hub.

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